Accounting for dummies / by John A. Tracy and Tage C. Tracy.

Format:

Book

Author/Creator:

Tracy, John A.

Series:

--For dummies.

--For dummies

Language:

English

Subjects (All):

Accounting.

Physical Description:

1 online resource (451 pages)

Edition:

7th ed

Place of Publication:

Hoboken, N.J.: J. Wiley, c2022.

Summary:

Demystify your financial statements and figure out what your accountant is talking about with this straightforward roadmap to the world of accounting Few skills are as useful as a basic understanding of accounting language. And with the right resources, learning the language of business can be intuitive, empowering, and fun. Accounting For Dummies is the perfect place to start, whether you're operating a small business, just need help managing the family budget, or you're a rising star in corporate America. It's a financial blueprint for the everyday person, easy-to-understand, and full of practical advice. You'll learn the basic ABC's of accounting, how to read and understand financial statements, create best in class budgets & forecasts, craft profitable business plans, take control of your own finances, gain insight on how companies get money from investors and banks, and avoid common money mistakes that trip up even the best of us. You'll also find out how to: Diagnose the financial health of your business and make a realistic plan to grow your company Improve your own or your family's money situation with sound financial planning and understanding Understand each of the three basic financial statements and what they say about a company's past, present, and future Enhance your knowledge of how accounting functions and operates in today's digital age and cloud-based world As a useful tool for business or as a guide to your personal finances, nothing compares to accounting mastery. And once you've nailed the basics, you'll wonder how you ever lived without this universal and beautiful language.

Contents:

Intro

Title Page

Copyright Page

Table of Contents

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1 Opening the Books on Accounting

Chapter 1 Accounting in Today's New Economy

Checking Your Preconceptions about Accounting

Thinking about where assets come from

Asking about profit

Sorting out stereotypes of accountants

Providing Vital Financial Information

Recognizing users of accounting information

Using accounting in your personal financial life

Seeing accounting at work

Accounting's Two Primary Roles

Taking a Peek behind the Scenes

Focusing on Transactions

Separating basic types of transactions

Knowing who's on the other side of transactions

Recording events

Taking the Financial Pulse of a Business

Meeting the balance sheet (statement of financial condition)

Reporting profit and loss

Reporting cash flows and changes in owners' equity

Remembering management's role

Accounting as a Form of Art

Chapter 2 Introducing Financial Statements

Setting the Stage for Financial Statements

Offering a few preliminary comments about financial statements

Looking at other aspects of reporting financial statements

The Income Statement

Presenting the components of the income statement

Income statement pointers

The Balance Sheet

Presenting the components of the balance sheet

Balance sheet pointers

The Statement of Cash Flows

Presenting the components of the statement of cash flows

Statement of cash flows pointers

A Note about the Statement of Changes in Shareowners' Equity

Gleaning Important Information from Financial Statements

How's profit performance?

Is there enough cash?

Can you trust financial statement numbers?.

Why no (or limited) cash distribution from profit?

Complying with Accounting and Financial Reporting Standards

Looking at who makes the standards

Knowing about GAAP

Divorcing public and private companies

Following the rules and bending the rules

Chapter 3 Safeguarding Company Assets

Separating the Duties of Bookkeepers and Accountants

Pedaling through the Bookkeeping Cycle

Getting to the end of the period

Finishing up for the period

Managing Accounting Systems

Categorize financial information: The chart of accounts

Standardize source documents and data-entry procedures for recording activities

Hire competent personnel

Get involved in end-of-period procedures

Leave good audit trails

Keep alert for unusual events and developments

Design truly useful reports for managers

Enforcing Strong Internal Controls

Double-Entry Accounting

Juggling the Books to Conceal Embezzlement and Fraud

Chapter 4 Accounting in the Digital Age

Noting a Few Foundational Accounting Concepts Related to Technology

Using Accounting Software in the Cloud and on the Ground

Controlling and Protecting Money Flows in the Electronic Age

Processing payroll

Controlling bank accounts

Surveying bank forms of electronic payments

Checking out non-bank forms of electronic payments

Using enhanced accounting controls

Managing the Accounting Function in the On-Demand World

Source documentation

Data rooms

Financial reporting

Flash reports and KPIs

Accounting and financial analysis tools

Chapter 5 Recognizing the Legal and Accounting Entity

Being Aware of the Legal Roots of Business Entities

Sole proprietorship

Partnerships

S corporations

Limited liability companies (LLCs)

C corporations

Going It Alone: Sole Proprietorships.

Differentiating Partnerships and Limited Liability Companies

Looking at important features

Understanding profit allocation

Incorporating a Business

Issuing stock shares

Distinguishing different classes of stock shares

Determining the market value of stock shares

Watching out for dilution of share value

Recognizing conflicts between stockholders and managers

Part 2 Exploring Financial Statements

Chapter 6 Reporting Profit or Loss in the Income Statement

Presenting Typical Income Statements

Looking at businesses that sell products

Looking at businesses that sell services

Looking at investment businesses

Taking Care of Housekeeping Details

Being an Active Reader

Deconstructing Profit

Revenue and expense effects on assets and liabilities

Comparing three scenarios of profit

Folding profit into retained earnings

Pinpointing the Assets and Liabilities Used to Record Revenue and Expenses

Making sales: Accounts receivable and deferred revenue

Selling products: Inventory

Prepaying operating costs: Prepaid expenses

Understanding fixed assets: Depreciation expense

Figuring unpaid expenses: Accounts payable, accrued expenses payable, and income tax payable

Reporting Unusual Gains and Losses

Watching for Misconceptions and Misleading Reports

Chapter 7 Reporting Financial Condition in the Balance Sheet

Expanding the Accounting Equation

Presenting a Proper Balance Sheet

Doing an initial reading of the balance sheet

Kicking balance sheets out into the real world

Judging Liquidity and Solvency

Current assets and liabilities

Current and quick ratios

Understanding That Transactions Drive the Balance Sheet

Sizing Up Assets and Liabilities

Sales revenue and accounts receivable

Cost of goods sold expense and inventory.

Fixed assets and depreciation expense

Operating expenses and their balance sheet accounts

Intangible assets and amortization expense

Debt and interest expense

Income tax expense and income tax payable

Net income and cash dividends (if any)

Financing a Business: Sources of Cash and Capital

Recognizing the Hodgepodge of Values Reported in a Balance Sheet

Chapter 8 Reporting Cash Sources and Uses in the Statement of Cash Flows

Meeting the Statement of Cash Flows

Presenting the direct method

Opting for the indirect method

Explaining the Variance between Cash Flow and Net Income

Accounts receivable change

Inventory change

Prepaid expenses change

Depreciation: Real but noncash expense

Changes in operating liabilities

Putting the cash flow pieces together

Sailing through the Rest of the Statement of Cash Flows

Understanding investing activities

Looking at financing activities

Reading actively

Pinning Down "Free Cash Flow"

Limitations of the Statement of Cash Flows

Chapter 9 Financial Accounting Issues

Reporting Changes in Owners' Equity

Recognizing Reasons for Accounting Differences

Looking at a More Conservative Version of the Company's Income Statement

Presenting an alternative income statement

Spotting significant differences

Explaining Differences

Accounts receivable and sales revenue

Inventory and cost of goods sold expense

Fixed assets and depreciation expense

Accrued expenses payable, income tax payable, and expenses

Wrapping things up

Calculating Cost of Goods Sold Expense and Inventory Cost

FIFO (first-in, first-out)

LIFO (last-in, first-out)

Recording Depreciation Expense

Scanning the Revenue and Expense Radar Screen

Using the Statement of Cash Flows as an Audit/Sanity Test.

Part 3 Understanding Financial Reports, Financial Statements, and Financial Information

Chapter 10 Producing Financial Reports

Quickly Reviewing the Theory of Financial Reporting

Starting with the financial statements

Keeping in mind the reasons for financial reports

Recognizing Top Management's Role

Keeping Current with Financial Accounting and Reporting Standards

Making Sure Disclosure Is Adequate

Footnotes: Nettlesome but needed

Other disclosures in financial reports

Putting a Spin on the Numbers (Short of Cooking the Books)

Window dressing: Pumping up the ending cash balance and cash flow

Smoothing the rough edges off year- to-year profit fluctuations

Comparing Public and Private Companies

Reports from publicly owned companies

Reports from private businesses

Dealing with Information Overload

Browsing based on your interests

Recognizing condensed versions

Using other sources of business information

Chapter 11 Deciphering a Financial Report

Knowing the Rules of the Game

Making Investment Choices

Managing investments alone or using a third party

Finding and understanding information sources

Contrasting Reading Financial Reports of Private Versus Public Businesses

Explaining the Role of MDORs and MD&amp

As

Frolicking through the Footnotes

Checking Out the Auditor's Report

Why audits?

What's in an auditor's report?

Discovering fraud, or not

Chapter 12 Analyzing Financial Information with Ratios

Understanding the Importance of Using Ratios to Digest Financial Statements

Improving Your Knowledge of Financial Language and Lingo

Starting with Sample Company Financial Statements

Benchmark Financial Ratios: Financial Strength and Solvency

Current ratio

Net working capital

Acid test ratio (aka quick ratio)

Debt-to-equity ratio.

Debt-to-tangible net equity.

Notes:

Previous ed.: 2016

Includes index

ISBN:

1-119-83754-5

1-119-83753-7

OCLC:

1296692424